A Systems Approach to Improve the Contents of a Contract by Modularizing a Contract’s Information Flow Architecture in EPC Projects: A Unique Application of Design Structure Matrix

This study addresses the decline in the success rate of industrial projects (more particularly, in EPC projects) due to unforeseen, disruptive operational events. To avoid the adverse influence of these events, engineering management usually defines and implements processes to support and enhancecontractor performance where the process effectiveness depends on the contract design. To deal with the adverse effects of disruptive events, the authors propose that the robustness of the information flow architecture can be improved by modularizing the architecture. A systems engineering approach usesaxiomatic design theory and design structure matrix methodology to enhance modularization. Results from the application of the method to information flow among actual contract clauses showed that modularization was increased, overall contract complexity (required work volume) was significantlyreduced, and the probability of project success was improved